KMC SPECIALITY HOSPITALS 2023-24 Annual Report Analysis

Tue, 24 Sep

KMC SPECIALITY HOSPITALS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

KMC SPECIALITY HOSPITALS Income Statement Analysis

• Operating income during the year rose 13.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.6% in FY24 as against 26.5% in FY23.
• Depreciation charges increased by 20.7% and finance costs increased by 40.3% YoY, respectively.
• Other income grew by 20.2% YoY.
• Net profit for the year grew by 13.8% YoY.
• Net profit margins during the year grew from 17.1% in FY23 to 17.1% in FY24.

KMC SPECIALITY HOSPITALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,558	1,772	13.8%
Other income	Rs m	35	42	20.2%
Total Revenues	Rs m	1,592	1,813	13.9%
Gross profit	Rs m	413	472	14.3%
Depreciation	Rs m	76	92	20.7%
Interest	Rs m	11	16	40.3%
Profit before tax	Rs m	360	406	12.7%
Tax	Rs m	93	102	9.4%
Profit after tax	Rs m	267	304	13.8%
Gross profit margin	%	26.5	26.6
Effective tax rate	%	25.8	25.1
Net profit margin	%	17.1	17.1

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KMC SPECIALITY HOSPITALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 465 million as compared to Rs 225 million in FY23, thereby witnessing an increase of 106.1%.
• Long-term debt stood at Rs 639 million as compared to Rs 399 million during FY23, a growth of 60.2%.
• Current assets fell 35% and stood at Rs 335 million, while fixed assets rose 68% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 43%.

KMC SPECIALITY HOSPITALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,135	1,436	26.5
Current Liabilities	Rs m	225	465	106.1
Long-term Debt	Rs m	399	639	60.2
Total Liabilities	Rs m	2,140	3,055	42.8
Current assets	Rs m	519	335	-35.4
Fixed Assets	Rs m	1,621	2,720	67.7
Total Assets	Rs m	2,140	3,055	42.8

KMC SPECIALITY HOSPITALS Cash Flow Statement Analysis

• KMC SPECIALITY HOSPITALS's cash flow from operating activities (CFO) during FY24 stood at Rs 384 million, an improvement of 18.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -559 million, an improvement of 16.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 205 million, an improvement of 29% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 30 million from the Rs 2 million net cash flows seen during FY23.

KMC SPECIALITY HOSPITALS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	323	384	18.9%
Cash Flow from Investing Activities	Rs m	-480	-559	-
Cash Flow from Financing Activities	Rs m	158	205	29.4%
Net Cash Flow	Rs m	2	30	1,670.0%

Current Valuations for KMC SPECIALITY HOSPITALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.9, an improvement from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 85.2, stands at 48.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.7 times, while the price to sales ratio stands at 7.8 times.
• The company's price to cash flow (P/CF) ratio stood at 33.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	9.6	10.9
TTM Earnings per share	Rs	1.6	1.9
Diluted earnings per share	Rs	1.6	1.9
Price to Cash Flow	x	27.3	33.1
TTM P/E ratio	x	35.2	48.0
Price / Book Value ratio	x	8.8	9.1
Market Cap	Rs m	10,030	13,128
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KMC SPECIALITY HOSPITALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY24, from 2.3x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 26.7x during FY24, from 32.9x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 21.2% during FY24, from 23.5% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 20.3% during FY24, from 24.2% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 10.5% during FY24, from 13.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.3	0.7
Debtors’ Days	Days	102	90
Interest coverage	x	32.9	26.7
Debt to equity ratio	x	0.4	0.4
Return on assets	%	13.0	10.5
Return on equity	%	23.5	21.2
Return on capital employed	%	24.2	20.3

To see how KMC SPECIALITY HOSPITALS has performed over the last 5 years, please visit here.

KMC SPECIALITY HOSPITALS Share Price Performance

Over the last one year, KMC SPECIALITY HOSPITALS share price has moved down from Rs 85.5 to Rs 85.2, registering a loss of Rs 0.3 or around 0.4%.

Overall, the S&P BSE SENSEX is up 27.1% over the year.

(To know more, check out historical annual results for KMC SPECIALITY HOSPITALS and quarterly results for KMC SPECIALITY HOSPITALS)